Frequently Asked Questions

You don’t have to pay when you first meet or speak to your adviser. At this point, we’re still getting to know you, finding out about your objectives and how we might help. If it takes more than one conversation or meeting to understand this, these will still be free. Please be aware that you won’t get any personal financial advice or recommendations as part of these preliminary discussions.

You’ll only pay if you decide to take financial advice by signing a fee agreement. But your adviser will make sure you know what the charges are first.

All advisers must have a diploma in financial planning (or equivalent) which is recognised by the Financial Conduct Authority (FCA) and complete training and development each year to keep their knowledge up to date. At Richstone Park, many of our advisers also have further qualifications such as advanced diplomas in financial planning.

Some of our advisers have additional qualifications in areas such as estate planning and long-term care.

The Financial Conduct Authority does not regulate Estate Planning.

Yes, the firm and each of the advisers are regulated by the Financial Conduct Authority (FCA). You can check this for yourself by visiting Financial Services Register | FCA and clicking on “Search the Register”.

Unlike a savings account that holds cash and pays a regular interest rate, the money you contribute into an investment is invested in the stock market and other asset classes. In some years you might see your pension and investments performing well and you’ll see a pleasant increase in value. At other times, the amount may take a fall. These fluctuations are completely normal and as with all investing, there are many factors – like company announcements, political and economic issues – that can have an impact on the value of your pension and investments.

Independent advisers can recommend financial products spanning the whole of the market. This means that their advice is unbiased and unrestricted.

Restricted advisers can only recommend products from certain providers. In some cases, they will recommend products from a single company.

It’s very easy to put off saving for your retirement, especially with everyday costs, but with people now living longer, pension planning is becoming increasingly important.

Pensions can often be quite complex which can sometimes deter people from taking out a pension and stop them acting in planning their retirement. Pension’s have become more straightforward with a number of changes in the regulations which has made the pensions process much simpler and easier to understand.

A pension in its simplest form is an investment plan which will provide you with an income once you retire. A pension gives you tax relief on contributions and the investment itself grows essentially free from tax.

You will pay tax on the pension that you take when you eventually retire. For many people however, their rate of tax in retirement will be lower than during their working lives, making a pension an extremely tax-efficient form of saving.

If you take out a pension plan, it will basically work as follows:

You will make payments into a pension fund, payments into the pension plan can be made as a lump sum, on a regular basis, or both. The funds are invested. You can draw your pension from the age of 55 (rising to 57 in 2028) Your pension can be drawn in a way which suits your requirements. There are certain circumstances, in which your dependents may also benefit from your pension plan. 

This is personal to you and depends on your own circumstances and the level of income that you would like. This can be affected by your age, your appetite to risk and when you would like to retire. The younger you start the less you will need to pay in to reach your goal. 

Flexibility is the key to retirement. In some cases, it may be beneficial from a tax point of view for you to not draw your pension immediately, as it’s now possible for your beneficiaries to ‘inherit’ your pension in a very tax efficient manner. 

There are certain options which should be considered when deciding how to draw your pension.

Tax Free Cash
Most pensions allow you to take an element of tax-free cash, typically 25% of your pension fund. If your pension is an occupational scheme that has been in place for many years, the amount you can take may be different.

Annuities
Traditionally, the most common way to draw your pension is by way of an annuity which will provide you with a guaranteed pension for the rest of your life. You can add other benefits, such as a pension for your spouse after your death or the facility to have your payments increase each year. Though, the more ‘options’ you add, the lower your initial annuity payment will be. If you suffer from any medical conditions you may qualify for an enhanced annuity, improving the amount you will receive.

Flexible Drawdown
This is an alternative to buying an annuity. Essentially, you will continue with your pension as an investment, but draw an income from the fund. The amount you can draw is unlimited, but you have to consider both the tax consequences and planning to ensure that your funds last as long as you need them. The benefit is that you have control over your investments, while still retaining the right to convert to an annuity at any time. You are also able to leave any unused funds to your beneficiaries. This option is not without its risks and should be fully discussed with one of our professional advisers.